A resurgent African Bank on Tuesday reported a surge in profit for the year to September, buoyed by an increase of more than 500 000 new customers in the period.
The lender reported a 38% increase in net profit after tax to R736-million, while its retail savings and investment customer deposits rose 15% to R10.8-billion. The bank also saw strong growth of 87% to R14-billion in retail loan disbursements.
A steady increase in new customers of its MyWORLD transactional accounts was evident, ending the year with 1 253 000 opened accounts, up from 741 000 in the previous reporting period.
The lender also recorded a surge in transactional volumes, which rose to 35-million, representing R45-billion in value.
“Operating costs have been well-contained in the current reporting period, with a 6% increase compared to the prior year, and is mainly attributable to greater operating activity during the current reporting period,” it said.
“Notwithstanding the increased disbursements reported in FY22 [full-year 2022], and the maturing of expensive wholesale debt liabilities, the group’s balance sheet remains liquid with adequate cash resources of R2.8-billion (FY2021: R9-billion].
“Equity capital of R11.9-billion [FY2021: R11.2-billion] continues to grow, representing group total capital levels of 43.4% [FY2021: 43.3%].”
The company also said it expects its recent acquisition of Grindrod Bank and Ubank to strengthen its liquidity and balance sheet further.
In August, the banking group succeeded in its bid to acquire the majority of Ubank’s disclosed assets and liabilities and took on its employees on a going concern basis.
The transaction was preceded by the R1.5-billion of Grindrod Bank.
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